Asian Stocks Rise on U.S. Jobless Data; Samsung at Record

Construction cranes stand on the Barangaroo redevelopment project as commercial buildings in the central business district tower over the site in Sydney, Australia. Photographer: Brendon Thorne/Bloomberg

Dec. 7 (Bloomberg) -- Asian stocks advanced, with the
regional benchmark index heading for its longest streak of
weekly gains in three months, as fewer Americans filed for
unemployment benefits and Australia’s building industry shrank
at a slower pace.

James Hardie Industries SE, a building materials supplier
that gets about 67 percent of sales from the U.S., rose 2.8
percent in Sydney. Samsung Electronics Co., the world’s biggest
smartphone maker, climbed to a record amid growing confidence
that earnings will increase. People’s Insurance Company (Group)
of China Ltd., Hong Kong’s biggest initial public offering in
two years, jumped 6.9 percent in its trading debut. Japanese
stock futures dropped after Tokyo was rattled by the biggest
earhtquake since last year’s record temblor.

The MSCI Asia Pacific Index rose 0.3 percent to 126.08 as
of 7:35 p.m. Tokyo time, with about five shares gaining for
every four that fell. The measure is heading for a seven-day
gain and its third week of advance, the longest such winning
streak since the period ended Aug. 17. Signs of recovery in the
world’s two largest economies and optimism U.S. lawmakers will
agree on a budget deal to avert the so-called fiscal cliff have
boosted Asian equities.

“We could see a short-term rally, driven by exporters amid
signs of improving U.S. economy,” said Masahiko Ejiri, a Tokyo-based fund manager for Mizuho Asset Management Co., which
oversees about $45 billion. “This rally may not be sustained.
Europe’s problems are likely to persist.”

The European Central Bank cut its growth and inflation
forecasts for the monetary union and President Mario Draghi said
yesterday the region won’t start to shake off its slump until
the second half of 2013, leaving the door ajar for further
interest-rate reductions.

China Rally

Japan’s Nikkei 225 Stock Average slid 0.2 percent. Futures
dropped 0.4 percent in Chicago after the 7.3-magnitude quake
struck off northeastern Japan at 5:18 p.m. local time,
triggering a small tsunami. Little damage was reported.

China’s Shanghai Composite Index climbed 1.6 percent. The
gauge extended this week’s advance to 4.1 percent, the best
weekly performance since October 2011, before the release of
data this weekend that may show economic growth is stabilizing.

The nation’s industrial production probably accelerated for
a third month to 9.8 percent from a year earlier, while retail
sales probably rose 14.6 percent, the most since March,
according to median estimates in Bloomberg News surveys. The
figures are due Dec. 9.

The country’s building industry shrank at a slower place
last month as the housing sector showed signs of recovery after
the central bank lowered borrowing costs. A separate report
showed the trade deficit widened less than economists predicted
in October.

Futures on the Standard & Poor’s 500 Index swung between
gains and losses today. The gauge rose 0.3 yesterday as Apple
Inc. rebounded from its biggest drop in four years and investors
weighed prospects for a budget deal in Washington to avert the
so-called fiscal cliff.

Jobless claims decreased by 25,000 to 370,000 in the week
ended Dec. 1, Labor Department data showed. The median forecast
of 52 economists surveyed by Bloomberg called for a drop to
380,000.

Samsung, the South Korean electronics maker that’s become
the 15th largest company in the world, rose 1.8 percent to a
record 1.48 million won in Seoul. The company’s market value
surpassed $200 billion for the first time amid growing
confidence earnings will increase.

The rally has been fueled by “bets for global economic
recovery, especially in the U.S.,” Chung Yun Sik, chief
investment officer for equities at ING Investment Management
Korea Ltd., which oversees about $20 billion, said by phone in
Seoul today. Investors are “selectively focused on those
continuing to boost their market share based on technology
leadership such as Samsung.”

Of the 598 companies on the MSCI Asia Pacific Index that
reported quarterly earnings since Oct. 1 and for which estimates
are available, 43 percent exceeded expectations, according to
data compiled by Bloomberg News.

The MSCI Asia Pacific Index advanced 15 percent through
yesterday from this year’s low on June 4 as central banks added
stimulus to spur economic growth. The benchmark index traded at
14.2 times estimated earnings, compared with 13.6 times for the
S&P 500 Index and 12.6 times for the Stoxx Europe 600.

Insurer IPO

PICC Group, which owns China’s biggest property insurer,
climbed 6.9 percent to HK$3.72 as it initiated trading in Hong
Kong. The Beijing-based company raised HK$24 billion ($3.1
billion) last week, selling shares at HK$3.59 each, in Hong
Kong’s biggest initial public offering in two years.

“The company has priced the stock at a relatively low
level, leaving the IPO investors some room” to reap gains, said
Olive Xia, a Shanghai-based analyst at Core Pacific-Yamaichi.
“PICC Group also has a good chance in life insurance going
forward” if it can improve its product mix and profitability to
take advantage of its rapid premiums growth.

Japanese utilities advanced after Kyodo News Agency
reported the government may allow nuclear reactors to restart
next summer as greenhouse emissions have increased since most
nuclear power plants were shut down last year.

Tokyo Electric Power Co., the owner of the power plant at
the heart of Japan’s nuclear disaster last year, surged 13
percent to 149 yen. Hokkaido Electric Power Co. gained 7.7
percent to 844 yen.